LHC dismisses SECP move to send sugar scam case to FIA

LAHORE: The Lahore High Court (LHC) on Thursday set aside the Securities and Exchange Commission of Pakistan’s (SECP) decision to send the sugar scam reference to the Federal Investigation Agency (FIA) for inquiries in light of the Sugar Inquiry Commission’s report.

Besides setting aside the nomination of two SECP officials to the joint investigation team (JIT) formed by the FIA to probe the matter, the court held that the SECP might choose to start proceedings afresh in the matter as per law.

However, the court held that the FIA had lawfully taken notice of the matter and it had powers for the purpose and dismissed the request to set aside notices issued by the JIT to the petitioners.

The division bench headed by Justice Sajid Mehmood Sethi announced the verdict while partly allowing petitions filed by administration of Al Arabia Sugar Mills and JDW and Faruki Pulp Mills, owned by Shahbaz Sharif family and Jahangir Tareen respectively, challenging FIA proceedings against them.

The bench had reserved the verdict after hearing detailed arguments of the parties and it was announced on Thursday. The petitioners, through their petitions, had argued that the federal cabinet approved investigations against sugar mills in light of the Sugar Inquiry Commission report, whereas it did not have the authority for the purpose.

They alleged that the Special Assistant to Prime Minister (SAPM) on Accountability and Interior Shahzad Akbar illegally directed the SECP and FIA for a probe against sugar mills in light of the report.

They also argued that the FIA Director General formed an investigation team wherein two members of the SECP were also nominated for technical assistance. They further argued that the SECP had also sent a reference to the FIA for action in the matter on September 12.

They said the joint investigation team issued notices to the administration of mills, while “assailing” all the steps. They contended that all steps were in violation of the Constitution and law. They pleaded with the court to set aside the notices by the joint investigation team after declaring them illegal.